A price skimming strategy is most often used for a new product when:
a. competition in the market is abundant.
b. customers are unwilling to spend a large amount of money on the product.
c. its supply is greater than its demand.
d. the product is perceived as having unique advantages.
ANSWER: d
This strategy is most often used for a new product when the product is perceived as having unique advantages. Price skimming is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.
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